FAQ
What is Pre-Action Protocol?
Litigation is a last resort. The Court rules, the "CPR", contain pre-action protocols which set out the steps that potential claimants and defendants are expected to have already followed to try to settle their disputes before looking to the Court for a decision. Failure to comply with pre-action protocol can result in the Court imposing costs sanctions on either a Claimant or Defendant if the dispute does proceed to Court.
There is a Pre-Action Practice DIrection that should be followed to try to settle potential claims which are contractual disputes such as disputes over the supply of goods or services. The parties should also follow this practice direction even for what may seem to be undisputed debt claims (ie where an invoice has been sent out, the sum due has not been disputed but remains unpaid). Where a debt is claimed by a business from an individual the practice direction sets out at Annex B information that must be provided by the business to the individual debtor.
Where the contract dispute relates to building/construction works such as a dispute between a developer and building contractor over payment terms or allegations of defective works, the parties are expected to have followed the Protocol for Construction and Engineering Claims. and not the Pre-Action Practice Direction.
If a contract claim involves a dispute with a construction or engineering professional such as an Architect, Engineer or a Building Surveyor or QS, potential claimants and defendants are also expected to have followed the Protocol for Construction and Engineering Claims. and not the Pre-Action Practice Direction.
Where a contract dispute involves other professional services (ie not construction and engineering professionals) there is a specific Protocol for Professional Negligence Claims which should be followed. This protocol will apply for disputes involving professionals such as legal advisers (ie solicitors, barristers, legal executives, licensed conveyancers) valuation surveyors, estate agents, accountants and financial advisers.
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